Republic of Turkey MINISTRY OF CUSTOMS AND TRADE TURKEY EU CUSTOMS UNION AND ITS EFFECTS ON CUSTOMS AND TRADE Ms. SEVİL KARACA, Head of Department 1
Regulations on Customs Administrative Capacity UCC Trade Facilitation Modernisation of 2
Unique and pioneering model Integration to the EU single market Last stage before the fullmembership 3
Decision No. 1/95 of EU-Turkey Association Council PUBLIC PROCUREMENT INTELLECTUAL PROPERTY RIGHTS HARMONISATION OF TRADE POLICY CUSTOMS PROVISIONS APPROXIMATION OF LAWS FREE MOVEMENT OF GOODS 4
Major instrument of integration for the Turkish economy both into European and global markets EU's 4th largest export market and 5th largest provider of imports EU is by far Turkey's number one import and export partner Dramatically increased trade over the last two decades 5
160.000.000 140.000.000 120.000.000 100.000.000 80.000.000 60.000.000 40.000.000 20.000.000 Turkey-EU Trade (Comparison Table for 1996-2016) 0 İhracat İthalat Toplam DT 1996 2015 Years Export Import Total Volume Ex/Im 1996 11.550.598 23.138.060 34.688.658 % 49.9 2016 68.343.908 77.501.203 145.845.111 % 88.1 X 1.000 USD 6
400 000 000 Foreign Trade Volume (Comparison Table for 1996-2016) 350 000 000 300 000 000 250 000 000 200 000 000 150 000 000 100 000 000 50 000 000 0 1996 2015 İhracat İthalat DT Hacmi Years Export Import Total Volume 1996 23.224.464 43.626.642 66.851.107 2016 142.529.584 198.618.235 341.147.819 X 1.000 USD 7
Customs.The new regulations and standards of EU Acquis into Turkish Customs legislation and implementation.administrative Capacity 8
Customs Territory: Turkish Customs Territory and EU Customs Territory ( EU + TR ) Customs Territory 9
Main concepts Tariff Classification (BTI) Customs Valuation (Impl.provisions) Origin of the Origin Goods of Goods (İmpl. Provisions Artc.16) 10
Main concepts Transit Customs Regimes (Special Procedures) (NCTS) Storage Specific use Origin of Goods Processing 11
Customs Simplifications Summary Declarations Simplified Customs Declarations Electronic Systems 12
1 2 3 Industrial Products Free Movement ECSC Products Rules of Origin Agricultural Simplified Products Customs Declarations Rules of Origin A.TR EUR.1 EUR.MED EUR.1 / EUR.MED Origin of Goods No Customs Duty No or Reduced Customs Duty No or Reduced Customs Duty 13
Free Trade Agreements Why FTAs? 1) Turkey s obligations under with the EU: «Article 16 of Decision No. 1/95 of Decision».trade diversion.trade creation effect 14
Free Trade Agreements Free Trade Agreements (signed): 25 ECSC, EFTA, Israel, Macedonia, Bosnia Herzegovina, Palestine, Tunisia, Morocco, Syria, Egypt, Albania, Georgia, Montenegro, Serbia, Chile, Jordan, Lebanon, Palestine, Mauritius, S.Korea, Kosovo, Malaysia, Singapore, Moldova and Faroe Islands Free Trade Agreements (not in force): 2 Lebanon, Kosovo Free Trade Agreement (suspended): 1 Syria Free Trade Agreement (Negotiation): 11+ 15
Free Trade Agreements Trade Creation of FTAs: Regional Convention Turkey is a party to the Regional Convention on pan-euro-mediterranean preferential rules of origin (PEM Convention). Convention regulates rules of origin of the existing FTAs between these countries: Turkey, EU (28), Western Balkans (5), Mediterranean Countries (6), Georgia, Moldova, Faroe Islands and Ukraine Same rules of origin is applicable between the parties of the Convention. This prevents tradesmen from complex rules of origin established by several FTAs and ease investment decision process. 16
Free Trade Agreements Why FTAs? 17
EU-Turkey Customs Cooperation EU-Turkey Instrument for Pre-Accession Assistance (IPA) Increasing administrative capacity 2003-2013 9 Modernization of Turkish Customs 37 individual projects 2014-2017 IPA II Period 7 projects under two sectors 18
EU-Turkey Customs Cooperation Modernisation of Turkish Customs Administration EU Projects;2003-2013 2003 Capacity building TW GÜMSİS (security systems, CCTV, plate reading) 2004 Web based BİLGE Common Transit Convention Enforcement capacity- x-rays and cold storages Risk Action Plan and supplies Customs Archive Center 19
EU-Turkey Customs Cooperation Modernisation of Turkish Customs Administration EU Projects;2003-2013 2006 ITMS-IT development and TW NCTS-IT development and TW Vehicle Tracking System Capacity building and post control TW 2007 Customs laboratories-supply and TWL 20
EU-Turkey Customs Cooperation Modernisation of Turkish Customs Administration EU Projects;2003-2013 2008 Enforcement capacity-train x-ray 2009 Maritime enforcement capacity-tw and supply Capacity building-risk analysis TW 2010 Interoperability and interconnectivity-ccn-csi 21
Modernisation of Turkish Customs Administration EU Projects;2003-2013 2012 EU-Turkey Customs Cooperation Customs revenues-twl Enforcement capacity-supply Customs laboratories-tw Capacity building-ipr Organizational restructuring and HRM 2013 Maritime enforcement capacity-tw and supply 22
Modernisation of Turkish Customs Administration EU Projects;2014-2017 2014 EU-Turkey Customs Cooperation Customs enforcement-passengers and cargo control Protection of consumer rights Unfair commercial practices 2015 Capacity building-container detection and control center 2017 IPR-Supply 23
CUSTOMS LABORATORIES: EU Project EU-Turkey Customs Cooperation To reach the accreditation standards for the laboratories (ISO 17025) The standard of EU laboratories To reach the IT systems of the EU laboratories To increase the number of accredited methods Decrease in the number of analysis sent to the other laboratories Easier and quicker access to the results of the analysis To start for tests for the market surveillance To increase awareness for the quality management To change organizational structure of laboratories 24
INTELLECTUAL PROPERTY RIGHTS (IPR): EU Project EU-Turkey Customs Cooperation Harmonization of the implementation of IPR rules with the EU Harmonization of the legislation Betterment of the customs implementation and standards in IPR Better protection of the right holders Enhanced communication among the public shareholders Increased public awareness 25
NEW COMPUTERIZED TRANSIT SYSTEM (NCTS): EU Project EU-Turkey Customs Cooperation Being a party to Common Transit Convention Harmonization of the legislation and IT infrastructure with the EU Less bureaucracy at customs Shortened duration of customs clearance Savings for the country and for tradesmen Competitive advantage for transportation sector From just a few in 2012 to more than 500.000 haulage to/from EU-EFTA Open to all modes of transport Comprehensive guarantee or guarantee waiver 26
ENFORCEMENT CAPACITY: EU Project EU-Turkey Customs Cooperation Providing modern supply to the customs offices in land, rail, air and maritime Enhanced capacity about the maritime operations Increased capacity for the fight against smuggling Deterrence effect of the acquired supply equipment Increase in the seizure trends 27
CUSTOMS 2020 PROGRAMME AND TAIEX EU-Turkey Customs Cooperation Follow up of the technological developments in the EU customs Alignment of the customs practices with the EU Better and more sophisticated service Follow up of the EU legislation Increase the professional network with the EU countries Access to the best practices and excellence centers in the EU for the better implementation of the 28
Its Effects on Administrative Capacity Union Customs Code REGULATION No. 952/2013 UCC-UNION CUSTOMS CODE 29
Its Effects on Administrative Capacity Electronic systems defined in the UCC WP 1) Registered Exporter System (REX) 2) Binding Tariff Information (BTI) 3) Customs Decisions 4) Direct trader access to the European Information Systems 5) Authorised Economic Operators (AEO) upgrade 6) Economic Operator Registration and Identification System upgrade (EORI 2) 7) Surveillance 3 8) Proof of Union Status (PoUS) 9) New Computerised Transit System (NCTS) upgrade 30
Its Effects on Administrative Capacity Electronic systems defined in the UCC WP 10) Automated Export System (AES) 11) Information Sheets (INF) for Special Procedures 12) Special Procedures 13) Notification of Arrival, Presentation Notification and Temporary Storage 14) National Import Systems upgrade 15) Centralised Clearance for Import (CCI) 16) Guarantee Management 17) Import Control System upgrade 31
EU-Turkey Customs Cooperation AUTHORIZED ECONOMIC OPERATOR: EU Introduction Central and faster clearance Authorized consigner / consignee Privileged passage and checks at borders Simplified procedure for A.TR and EUR.MED Trade facilitation/risk based control Acceleration of transactions of goods and vehicles Encourage safe and secure trade Reduce costs International prestige By the end of 2013, 6 companies; as of November 23th 2017, 189 companies 32
EU-Turkey Customs Cooperation SINGLE WINDOW: EU Introduction Lodging standardised information and documents with a single entry point e-application and e-document Revised legislation, elimination of inefficient procedures Simplification and less bureaucracy Time saving 33
Scope : Target : Trade Facilitation REX System Trade of GSP eligible goods Simplification Development friendliness (LDCs) Less bureaucracy Measures to ensure compliance by public authorities with their obligations (monitoring) Move to self-certification made by «Registrated» exporter «Statement of origin» instead of Form A document 34
Trade Facilitation Board of Trade Facilitation WTO Trade Facilitation Agreement Article 23/2: Establishment of National Committee on Trade Board of Trade Facilitation: Prime Ministry Simplification Objectives: Overseeing and coordinating implementation of Agreement in the Turkey, creating a platform for publicprivate sector partnership for TF Members: Customs Administration, Ministry of Economy, Food, Healt and Transport Authorities, Turkish Exporters Assembly, Union of Chambers, Associations of Customs Consultancy 35
Trade Facilitation National Trade Facilitation Strategy and Action Plan for 2018-2022 Strategy and Action Plan drafted by Working Group and will be in force as of January, 2018 Strategy has 5 sub-headings: Transparency Facilitation Decreasing Costs Improving Cooperation Capacity Building Vision Statement: «Increasing competitiveness and preferableness of Turkey in terms of velocist, cost and facility of 36 foreing trade»
Modernization of the EU-Turkey Customs Union 5 Reasons Why We Should Update 1) Asymmetries in the EU decision making process 2) Asymmetries in the negotiation process of the FTAs with third countries 3) Road transport permits 4) Visas 5) Trade diversion Advantages of the Evaluation 1) Efficient participation in the EU decision making process 2) Simultaneous FTAs with third countries 3) Avoid trade diversion 4) Increase in the competitiveness 5) Reduce in the customs inspections 6) Contribution to trade facilitation 37
Thank You! 38